The current correction in the stock market has brought the Standard and Poor's 500 down over the last two months from 1220 at the end of April 2010 to the end of June close near 1030.
IN PICTURES: 20 Tools For Building Up Your Portfolio

Market Carnage
The correction has been severe, with only 7% of stocks currently trading above their 50-day moving average through June 29, 2010, according to Bespoke Investment Group. The worst hit industry was industrials where only 2% of stocks were trading above their 50-day moving average. Telecom was the winner, with only a third of telecom stocks in this category.

Despite the carnage, and unfortunately for investors, many stocks have much further to fall before reaching the lows hit during the bear market low of March 2009. There are, however, some large capitalization names that have fallen close to or below these levels, and bear some further research.

Reducing Guidance
In mid-June, Nokia (NYSE:NOK) reduced its guidance for the second fiscal quarter, accelerating a decline in stock prices that started in April. The company blamed problems in its devices and services segment, where Nokia is facing tough competition at the high end of the market.

This is a politically correct way of saying that the company is losing the battle for market share in the smart phone area. Nokia now is guiding operating margins to be at the low end of a range of 11% to 13% in 2010. Standard & Poor's promptly changed its ratings outlook on the company from stable to negative, citing "material deterioration of the historically industry leading margins of Nokia's Devices and Services segment."

Monsanto (NYSE:MON) is trading far below the bear market low in March 2009, and closed at $46.22 at the end of June. The stock hasn't been at these levels since early 2007. The company released disappointing earnings last week, and established guidance for 2011 that might have been a little short of what investors wanted.

Boston Scientific (NYSE:BSX) is another stock below the March 2009 levels, and has been on a long-term downtrend for the last 12 months. The company had to issue a recall of one of its products earlier in the year, and reduced guidance after reporting first quarter earnings back in April 2010. Insiders have also been dumping shares all year.

On a positive note, Boston Scientific has moved to get its balance sheet in order and just announced the closing of a new credit line to be used in part to pay off debt maturing in 2011.

Big Losses
Apollo Group
(Nasdaq:APOL) peaked at close to $90 a share back in March 2009 when just about every other stock was hitting a new low every day. Since then the company has lost 50% of its value settling into the low $40 range.

Apollo Group and the rest of the for-profit education industry has become the target of some prominent hedge fund managers over the last few months, with one even dubbing the industry as the "next sub prime." The industry is also heavily dependent on the government for assisting its students for aid, and any news regarding an interruption or more regulation on that aid can cause the stocks to go into freefall.

Bottom Line
Some large capitalization stocks have already fallen below prices found at the nadir of the bear market reached in March 2009, and might represent an opportunity for those investors who have the courage to buy while others flee. However, investors need to carefully research these names before plunging forward as these stocks have company specific issues apart from the general market sell off. (Learn more, see: Adapt To A Bear Market.)

Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!

Related Articles
  1. Investing

    The ABCs of Bond ETF Distributions

    How do bond exchange traded fund (ETF) distributions work? It’s a question I get a lot. First, let’s explain what we mean by distributions.
  2. Stock Analysis

    3 Stocks that Are Top Bets for Retirement

    These three stocks are resilient, fundamentally sound and also pay generous dividends.
  3. Investing News

    Are Stocks Cheap Now? Nope. And Here's Why

    Are stocks cheap right now? Be wary of those who are telling you what you want to hear. Here's why.
  4. Investing News

    4 Value Stocks Worth Your Immediate Attention

    Here are four stocks that offer good value and will likely outperform the majority of stocks throughout the broader market over the next several years.
  5. Investing News

    These 3 High-Quality Stocks Are Dividend Royalty

    Here are three resilient, dividend-paying companies that may mitigate some worry in an uncertain investing environment.
  6. Stock Analysis

    An Auto Stock Alternative to Ford and GM

    If you're not sure where Ford and General Motors are going, you might want to look at this auto investment option instead.
  7. Mutual Funds & ETFs

    The 4 Best Buy-and-Hold ETFs

    Explore detailed analyses of the top buy-and-hold exchange traded funds, and learn about their characteristics, statistics and suitability.
  8. Stock Analysis

    The Biggest Risks of Investing in Netflix Stock

    Examine the current state of Netflix Inc., and learn about three of the major fundamental risks that the company is currently facing.
  9. Stock Analysis

    What Seagate Gains by Acquiring Dot Hill Systems

    Examine the Seagate acquisition of Dot Hill Systems, and learn what Seagate is looking to gain by acquiring Dot Hill's software technology.
  10. Professionals

    How to Protect Your Portfolio from a Market Crash

    Although market crashes are usually bad news for your portfolio, there are several ways to minimize losses or even profit outright from market movement.
  1. How do I read and analyze an income statement?

    The income statement, also known as the profit and loss (P&L) statement, is the financial statement that depicts the ... Read Full Answer >>
  2. Can working capital be too high?

    A company's working capital ratio can be too high in the sense that an excessively high ratio is generally considered an ... Read Full Answer >>
  3. How do I use discounted cash flow (DCF) to value stock?

    Discounted cash flow (DCF) analysis can be a very helpful tool for analysts and investors in equity valuation. It provides ... Read Full Answer >>
  4. How do dividends affect retained earnings?

    When a company issues a cash dividend to its shareholders, the retained earnings listed on the balance sheet are reduced ... Read Full Answer >>
  5. What is the formula for calculating compound annual growth rate (CAGR) in Excel?

    The compound annual growth rate, or CAGR for short, measures the return on an investment over a certain period of time. Below ... Read Full Answer >>
  6. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!